Based on the graph showing the effects of a government budget surplus, how would a budget surplus influence the equilibrium quantity of saving and investment?
a. It would create a higher equilibrium quantity of saving and investment.
b. It would create a lower equilibrium quantity of saving and investment.
c. It would have no influence on the equilibrium quantity of saving and investment.
d. It would drive the equilibrium quantity of saving and investment to zero.
a. It would create a higher equilibrium quantity of saving and investment.
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Horizontal equity means that equally situated individuals should be taxed equally
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of an automatic stabilizer?
A. Congress legislates lower tax rates to increase consumption and investment. B. Tax rates are increased during a recession to maintain a balanced budget. C. A regressive income tax system reduces tax revenues (as a share of income) as income expands. D. Revenues from the corporate income tax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted.
Which of the following statements is NOT consistent with new growth theorists' beliefs?
A. Innovation can lead to lower productivity costs. B. Technology must be understood in terms of what drives it. C. Rewards lead to technological advances. D. Inventions are much more important than innovation.
Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Figure 24.1Refer to Figure 24.1. The MPC in this economy is
A. 0.4. B. 0.5. C. 0.6. D. cannot be determined from the given information.